Electronics R Us spent $25,000 on research and development to create a new product. The product was successfully developed and launched into the market. How should the research and development costs be treated?
A) The full $25,000 should be capitalized.
B) The research portion of the $25,000 should be capitalized.
C) The research portion of the $25,000 should be expensed.
D) The full $25,000 should be expensed.

Question

Quizplus · Accepted Answer

Research costs are typically expensed as incurred, while development costs can be capitalized if certain criteria are met.

Electronics R Us Spent $25,000 on Research and Development to Create